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DB POST:Why do we need depreciation? What effects do differentdepreciation methods have on expenses...DB...

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Accounting

DB POST:

Why do we need depreciation? What effects do differentdepreciation methods have on expenses and assets?

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As per the matching principle all revenues and expenditures of a particular period should come in that periods income statement to give true and fair view of the financial statement However with regards to Fixed Assets like machinery they have the useful life of more than one year Therefore they are not recognized as an expense Hence the a need of recognizing the expense part for    See Answer
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In: AccountingDB POST:Why do we need depreciation? What effects do differentdepreciation methods have on expenses...DB POST:Why do we need depreciation? What effects do differentdepreciation methods have on expenses and assets?

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